The Resolution Foundation published research on 13 February 2025 finding that rooftop solar panels could cut energy bills by almost a quarter for the poorest households, but that high upfront costs mean millions are missing out1. The report, Sunny day savings, examines what the government's proposed "rooftop revolution" means for household bills and fuel poverty1.
Assuming typical generation, consumption and prices, a family with a 3kW solar panel could save as much as £440 a year, through both buying less energy and selling excess electricity back to the grid1. For the 3.6 million fuel poor families who spend over a tenth of their disposable income on energy, those savings could reduce bills by 24 per cent1. The Foundation estimates that rolling out rooftop solar to lower-income households could lift as many as 1.2 million families in Britain out of fuel poverty1. Its briefing note puts the figure at up to one in three fuel poor households, subject to the suitability of their homes2.
A 3kW solar panel currently costs around £6,500, which the report describes as a steep ask for low-income households, three in five of whom have less than £1,000 in savings1. Measured by savings per pound spent, solar yields 7p a year per pound, against 5p for cavity wall insulation and 3p for double glazing1. Uptake remains low: fewer than one in ten roofs (8 per cent) have solar panels, compared with almost three in four cavity walls (72 per cent) filled1.
The distribution of installations has shifted. In 2015, more solar panels were installed in the poorest areas (35 per cent) than the richest (31 per cent); by 2023, panels were more than twice as likely to go to the richest neighbourhoods1. The briefing note gives the 2023 figures as 45 per cent in the richest third of lower-layer super output areas against 21 per cent in the poorest2.
"The government should include a new means-tested support scheme for solar panels in the upcoming Warm Homes Plan. This could really get the 'rooftop revolution' up and running and ensure that the consumer benefits from this net zero transition aren't just hogged by richer households."
The report also raises concerns about export payments. It says most consumers appear to be paid relatively well for the electricity they generate, but that the Smart Export Guarantee is not doing enough to prevent some owners being paid very little, with 20 per cent of tariffs "unbundled" and paying just 4p/kWh on average2. The Foundation recommends means-tested grants and subsidised loans targeted at low-to-middle income households, and says households should get a fair price for excess energy1.
| Measure | Return per pound spent per year |
|---|---|
| Solar panels | 7p |
| Cavity wall insulation | 5p |
| Double glazing | 3p |
Why it matters for households
The figures set out how far a home's solar panel savings and payback depend on who can afford the installation in the first place. For a household that can pay, the return compares well with other bill-cutting measures; for one that cannot, the £6,500 upfront cost is the barrier, and the report notes that government support has been reduced over the past decade1. That matters for solar panels and household energy independence, because a home that generates its own electricity buys less from the grid and is less exposed to price shocks, but only once the system is installed. The report also indicates that the value of solar export payments varies, with some Smart Export Guarantee tariffs paying very little2.
What happens next
The report calls for a means-tested support scheme to be included in the upcoming Warm Homes Plan, which it says could put millions more solar panels on roofs by 20301. No date for the Warm Homes Plan is given in the research. The government has not responded to the report in these pages.
Sources2 cited
- Rooftop solar panels can cut energy bills by almost a quarter – but without targeted support households in poorer areas will miss out • Resolution Foundation, resolutionfoundation.org
- Sunny day savings • Resolution Foundation, resolutionfoundation.org